CHE2873
Introduction to
Chemical Processes
Lecture 9:
An Introduction of Oil &
Gas Industry (E&P)
Dr. Tan Jully, CHE
Today Content – Learning Outcome
• History of Petroleum
• Origin of Reservoir
• Outlook of Oil & Gas Industry
Reference:
Fahim, Mohamed A. Alsahhaf, Taher A. Elkilani, Amal. (2010). Fundamentals of Petroleum Refining - 2.2
Composition of Crude Oils. Elsevier.
Nolan, Dennis P.. (2011). Handbook of Fire and Explosion Protection Engineering Principles for Oil, Gas,
Chemical and Related Facilities (2nd Edition) - 4.2 General Description of Hydrocarbons. Elsevier.
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Watch this clips to refresh your knowledge of where
crude oil from
Video adapted from: Oil 101. Student Energy, www.studentenergy.org
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History of Petroleum
 First use: Egyptians, Chinese, Babylonians
 First drilling: Chinese using bamboo, American using cable tool
Kuhn, O. (2004)
https://csegrecorder.com/articles/view/ancient-chinese-drilling
 First product
https://energyhq.com/2017/02/evolution-of-a-drilling-rig
 Demand increase
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A barrel of Crude Oil
A general crude oil may contains of 84% C, 14%
H, 1-3% S, N, O, metals and salts (<1%).
LPG ≈ 1 gallons
1 barrel
= 42 gallons
Gasoline
≈ 19 gallons
Fuel Oil
≈ 9 gallons
Jet fuel ≈ 4 gallons
Asphalt ≈ 2 gallons
Light crude
Others ≈ 7 gallons
Heavy crude
Different crude oils resulted from different
burial histories and different mixes if
Kerogen
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Origin of reservoir
1. Crude oil is found in subsurface rock formations known
as reservoirs. It is typically found in the presence of natural
gas (associated natural gas).
2. Petroleum reservoirs may contain oil, natural gas, or both.
3. The reservoir rock is the porous, permeable rock layer or layers
that hold the oil and gas.
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Global Oil Reserves (2019)
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World Hydrocarbon Basins
Out of a total of about 870 petroleum-bearing basins in the world, there are technically
about 100 of such richly endowed basins, spanning every continent.
(Jane W., GeoExPro Magazine, 2019)
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World Oil Consumption
The 10 largest oil1 consumers and share of total world oil consumption in 2017
1
2
Oil includes crude oil, all other petroleum liquids, and biofuels.
Most recent year for which data are available when this FAQ was updated.
Reference: U.S. Energy Information Administration (www.eia.gov)
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Business Drivers
 Minimize cost
 Increase production
 Increase reserves
 Generate new opportunities
 Use competitive advantages
 QHSE
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The Oil and Gas Value Chain
Dassault Systèmes, 2019
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Reservoir Life Cycle
Adapted from In book: Recent Insights in Petroleum Science and Engineering (pp.31-53)
Chapter: Petroleum Extraction Engineering Publisher: InTech Open
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E&P Companies
10 Biggest Oil Companies
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THANK YOU!!
Knowing is not enough; we must
apply. Willing is not enough; we
must do